What exactly is an Crypto Credit Card? How different it is from the normal cards

For a very long time now credit cards are often considered the most easy mode of payment. However, with the advent of technology  many firms have now accepted cryptocurrency as a payment option. Let us have a look at how exactly a crypto credit card works.

What is a crypto credit card?

Just like any credit card that offers travel rewards or cash back on purchases, a crypto credit card also offers rewards in cryptocurrency. There are debit cards too in the crypto world. However, unlike crypto debit cards, a crypto credit card allows you to borrow from the card issuer and payback later, very similar to traditional credit card functions. However, the big difference is that you also pay back in cryptocurrency and the rewards that you receive will also come in cryptocurrencies such as Bitcoin and others.

Types of crypto credit cards

Different crypto credit cards reward users differently. A Gemini credit card automatically earns crypto rewards that are compatible with more than 30 different cryptocurrencies. The Gemini card is issued by WebBank and created with MasterCard, allowing users access to all merchants that accept MasterCard. A convenient app also helps you manage your account, like freezing and unfreezing your card, and 24/7 live customer support will be available.

BlockFi is a card that allows users to accumulate interest based on Bitcoin holdings. Here, cryptocurrency is the default rewards structure for your BlockFi card. Rewards include 1.5% back on purchases, paid out in Bitcoin and held within your BlockFi account. You can use your card anywhere Visa is accepted for greater spending power, and there are no foreign transaction fees when you are traveling.  

SoFi credit cards: Offers rewards differently from BlockFi credit cards. In the case of SoFi credit cards, rewards points can be redeemed for either Bitcoin or Ethereum. On the other hand, Venmo allows users to purchase Bitcoin, Ethereum, Litecoin, or Bitcoin Cash with the cashback earned from purchases. Brex Business card users spend reward points on either Bitcoin or Ethereum.

Be careful on your transactions

Just like the traditional credit cards, crypto cards are much like conventional credit cards and failure or delay in paying back will attract high interest and late fees. These cards will have some weight on your credit score as well. Annual fees are also applicable as in traditional credit cards. In other words, better understanding of crypto credit cards is vital in managing your finances in a better and systematic way.